This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 10. George steals your wallet, making himself better off, and you worse off. Before the theft
took place the allocation of resources was necessarily efficient.
11. Ice cream is congestible.
12. A private good is:
A) nonexcludable and rival in consumption.
B) excludable and nonrival in consumption.
C) excludable and rival in consumption.
D) nonexcludable and nonrival in consumption. definition 13. In our story about taming the Wild West, the arrival of John Wayne decreased the
farmer's cost of protecting his property rights.
14. My demand for cigars is C=12-3P where P is the price of cigars and C is the number of
cigars I purchase and smoke. Assume the current price of cigars is $2/cigar. Given my
demand curve, I choose to consume 6 cigars. My total willingness-to-pay for these 6
area under demand curve= WTP
D) Not enough information to tell.
solve for intercepts, find area of triangle, subtract
smaller triangle and BAM...
View Full Document
This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07